According to the Charlotte Observer, the federal government has declared that North Carolina’s anti-LGBT HB2 law violates Title IX of the U.S. Civil Rights Act.

U.S. Dept. of Justice officials have given N.C. Governor Pat McCrory until Monday to remedy the law and confirm “that the state will not comply with or implement HB2.”

“The Department of Justice has determined that, as a result of compliance with and implementation of NC House Bill2, both you and the state of NC are in violation of Title VII of the Civil Rights Act 0f 1964,” a letter by Valita Gupta, principal deputy assistant attorney general reads.

Here are some excerpts from the letter, as reported by the Observer:

“Title VII prohibits an employer from discriminating against an individual on the basis of sex and from otherwise resisting the full enjoyment of Title VII rights …

Federal courts and administrative agencies have applied Title VII to discrimination against transgender individuals based on sex, including gender identity …

Access to sex-segregated restrooms and other workplace facilities consistent with gender identity is a term, condition or privilege of employment. Denying such access to transgender individuals, whose gender identity is different from the gender assigned at birth, while affording it to similarly situated non-transgender employees, violates Title VII …

“[HB2] is facially discriminatory against transgender employees on the basis of sex because it treats transgender employees, whose gender identity does not match their biological sex, as defined by HB2, differently from similarly situated non transgender employees …

Based upon the above, we have concluded that in violation of Title VII, the state is engaged in a pattern or practice of resistance to the full enjoyment of Title VII rights by employees of public agencies …

If the DOJ’s findings are upheld, North Carolina could lose millions in federal school funding.